Speaker 1: Bloomberg Audio Studios, podcasts, radio news.
Speaker 2: Good morning.
Speaker 3: I'm Nathan Hager and I'm Karen Moscow. Here are the
Speaker 3: stories we're following today.
Speaker 2: Karen, we begin with deadlock in DC. Congress has blown
Speaker 2: past a midnight funding deadline to trigger the first government
Speaker 2: shutdown in nearly seven years. Democrats and Republicans remain in
Speaker 2: a spending standoff. The Democrats want to attach healthcare and
Speaker 2: other policy changes to a stopgap spending bill. Senate Minority
Speaker 2: Leader Chuck Schumer is blaming the majority party.
Speaker 4: Republicans once again rejected democrats proposals to avoid a shutdown,
Speaker 4: fixed healthcare premiums and spare Americans the calamity of skyrocketing
Speaker 4: through the roof healthcare costs.
Speaker 2: Senate Minority Leader Chuck Schumer says unless Congress act Obamacare,
Speaker 2: tax credits will expire at the end of the year,
Speaker 2: in premiums will spike. Majority Leader John Thune says Democrats
Speaker 2: are to blame.
Speaker 5: Democrats may have chosen to shut down the government tonight,
Speaker 5: but we can reopen it tomorrow. All it takes is
Speaker 5: a handful of Democrats to join Republicans to pass the clean,
Speaker 5: non partisan funding bill that in front.
Speaker 2: Of US Senate Majority Leader John Thune and his fellow
Speaker 2: Republicans needed at least eight Democrats to support the funding bill.
Speaker 2: Only three voted, with all but one Republican in favor
Speaker 2: of it last night.
Speaker 3: Nathan, the government shutdown means key services for Americans and
Speaker 3: pay for federal workers are suspended. President Trump is tying
Speaker 3: the healthcare funding stand off to immigration.
Speaker 6: They wanted to be able to take care of people
Speaker 6: that have come into our country illegally, and no system
Speaker 6: can handle that. And so we're totally opposed on that.
Speaker 6: But we can't take care.
Speaker 7: We just can't do it.
Speaker 6: I'd love to do everybody, I'd love to do.
Speaker 8: The whole world, but.
Speaker 6: Our country can't handle people that come into our country illegally.
Speaker 3: President Trump spoke to reporters from the White House a lawn.
Speaker 3: He's suggesting his administration will use this shutdown to conduct
Speaker 3: mass lay offs of federal workers beyond temporary furloughs. The
Speaker 3: Congressional Budget Office estimates about seven hundred and fifty thousand
Speaker 3: federal employees will be sidelined each day the government is
Speaker 3: shut down.
Speaker 2: And Karen Bloomberg Economics estimates the shutdown could send the
Speaker 2: unemployment rate from four point three to four point seven percent.
Speaker 2: That's if it lasts for three weeks, and those furloughed
Speaker 2: workers count as temporarily unemployed. Historically, much of the economic
Speaker 2: impact from shutdowns has been recouped after it ends, but
Speaker 2: during the last one, the Congressional Budget Office estimated the
Speaker 2: US economy failed to recover three billion of the eleven
Speaker 2: billion dollars at lost in overall output.
Speaker 3: Well Nathan us Dock Index futures are slipping with the
Speaker 3: start of the first government shutdown in nearly seven years.
Speaker 3: We get more with Bloomberg's John Tucker John Good Morning, Hey.
Speaker 9: Good morning, Karen.
Speaker 10: Traders say if the shutdown stretches from days to weeks
Speaker 10: and could intensify concern over an economic slowdown and drive
Speaker 10: treasury yields and stocks lower. Well, the shutdown also means
Speaker 10: that key economic reports they're on hold, that includes Friday's
Speaker 10: critical jobs report, and traders fear that the loss of
Speaker 10: visibilities is going to lead markets in the dark and
Speaker 10: the outlook for monetary policy from the Fed. Daniel Polliot
Speaker 10: oh Tree Capital Management sees it this way.
Speaker 11: In the past, shutdowns have had a limited effect on
Speaker 11: bonds and stocks, but with valuations so stretched in equities today,
Speaker 11: this time potentially could be different.
Speaker 10: Well, non essential fedal workers will be furlough. The Trump
Speaker 10: administration has said they're looking to make some of those
Speaker 10: cuts permanent, and that could create a shock, just as
Speaker 10: FED policy makers are focusing on the labor market in
Speaker 10: New York, John Tucker, Bloomberg.
Speaker 2: Radio, Okay, John, thank you, speaking of the labor market.
Speaker 2: The White House has withdrawn the nomination of EJ. And
Speaker 2: Tony to lead the Bureau of Labor Statistics. His nomination
Speaker 2: was seen as an attempt by the President to gain
Speaker 2: control over the agency responsible for that key economic data,
Speaker 2: including the monthly jobs report and the Consumer Price indexis
Speaker 2: is used to measure inflation. Bloomberg's Miles Miller has more
Speaker 2: on the surprise reversal.
Speaker 5: E j.
Speaker 12: Antonio was just to partisan from the Heritage Foundation, which
Speaker 12: has a lot of connections to the current Trump White House,
Speaker 12: and surely that he was just to partisan, and in
Speaker 12: addition to that that they did not feel he would
Speaker 12: have a smooth sailing on Capitol Hill.
Speaker 2: Bloomberg's Miles Miller ads the Senate had not yet set
Speaker 2: a date for a confirmation hearing.
Speaker 3: Nathan as traders remain in the dark with economic data.
Speaker 3: Should the shut down carry on, they may rely more
Speaker 3: heavily on fed's speak. And we heard from Chicago Fed
Speaker 3: President Austin Goulsby yesterday discussing the impact of tariffs on
Speaker 3: interest rates.
Speaker 13: I thought rates are going to come down in that environment,
Speaker 13: and I was saying I thought they had a fair
Speaker 13: bit of ways to go when they announced the tariffs
Speaker 13: at those kind of rates, especially in manufacturing, also in agriculture.
Speaker 13: It was the hair on fire kind of moment where
Speaker 13: a lot of folks in the in various manufacturing industries
Speaker 13: were saying, we can't if these are the rates, we're
Speaker 13: not going to survive. We're going to see a real
Speaker 13: closing out.
Speaker 3: Austin Golesby spoke at an agricultural conference hosted by the
Speaker 3: Chicago Fed. He also expressed concern about some government official
Speaker 3: supporting the idea of giving the Trump administration the power
Speaker 3: to influence interest rates.
Speaker 2: While the standoff continues on Capitol Hill, Karen, President Trump
Speaker 2: says his administration is close to ending a standoff with
Speaker 2: Harvard and finalizing a five hundred million dollar deal. Speaking
Speaker 2: in the Oval Office, alongside Education Secretary Linda McMahon. The
Speaker 2: President explained what Harvard plans to do once that agreement
Speaker 2: is reached.
Speaker 6: Well in the process of getting very close, and Linda's
Speaker 6: finishing up the final details, and they'd be paying about
Speaker 6: five hundred million dollars and they'll be operating trade schools.
Speaker 6: They're going to be teaching people how to do AI
Speaker 6: and lots of other things.
Speaker 2: President Trump's deal with Harvard would end one of his
Speaker 2: highest profile class with American universities. It's not clear if
Speaker 2: the settlement would include an independent monitor at something Columbia
Speaker 2: University accepted in its own agreement.
Speaker 3: And finally, Nathan and Company news Pfizer has agreed to
Speaker 3: cut some prices by up to eighty five percent and
Speaker 3: sell directly to the public in the US. The move
Speaker 3: allows Pfizer to avoid tariffs on the pharmaceutical industry for
Speaker 3: three years and addresses President Trump's argument that Americans are
Speaker 3: paying more for medicines and remarks heard here on Bloomberg.
Speaker 3: Swiser CEO Albert Borla talked about the deal at the
Speaker 3: White House.
Speaker 14: For years, other rich nations refused to pay the first
Speaker 14: serve for the medical innovation, and as a result, Americans
Speaker 14: had to assume this proportional cost on their soldiers. This
Speaker 14: situation we all knew is not sustainable.
Speaker 3: Heiser CEO Albert Borlow is speaking alongside President Trump. Other
Speaker 3: major drug makers are expected to follow the move. Time
Speaker 3: now for look at some of the other stories making
Speaker 3: news in New York and around the world, and for
Speaker 3: that we're joined by Bloomberg's Modica Rigs Monica, Good morning, Hey.
Speaker 9: Good morning, Karen.
Speaker 15: A federal judge says the Trump administration unconstitutionally targeted non
Speaker 15: citizens for deportation over pro Palestinian protests. Bloomberg's Amy Morris
Speaker 15: has that story from Washington.
Speaker 16: A federal judge in Boston ruled a US policy that
Speaker 16: targets international students for removal on idiological grounds is unconstitutional,
Speaker 16: violating the First Amendment. The judge says the policy was
Speaker 16: arbitrary and capricious, and accused Homeland Security Secretary Christy Nome
Speaker 16: and Secretary of State Marco Rubio of misusing their powers.
Speaker 16: US District Judge William Young also ruled the administration violated
Speaker 16: the Administrative Procedure Act, so a hearing on that is
Speaker 16: to be scheduled later in Washington. Amy Morris Bloomberg Radio.
Speaker 15: President Trump says Hamas has a few days to accept
Speaker 15: a peace proposal.
Speaker 9: He says, Israel's already agreed to.
Speaker 6: We're going to do about three or four days.
Speaker 11: We'll see how it is.
Speaker 6: All of the Arab country signed up, the Muslim country
Speaker 6: is all signed up, zeels all signed up. We're just
Speaker 6: waiting for Amas, and Amas is either going to be
Speaker 6: doing it or not. And if it's not, it's going
Speaker 6: to be a very set and.
Speaker 15: He says the deal would include the release of Palestinian
Speaker 15: prisoners in exchange for hostages. Rescuers are scrambling now to
Speaker 15: find survivors after a powerful magnitude six point nine earthquake
Speaker 15: at the Philippines last night.
Speaker 9: At least sixty nine people have died.
Speaker 15: Meantime, forecasters watching two big storms in the Atlantic. Here's
Speaker 15: Bloomberg's meteorologist Craig Allen.
Speaker 17: Hurricane Umberto is still in the Atlantic, a category one
Speaker 17: with eighty mile per hour winds less than three hundred
Speaker 17: miles away from Bermuda, but will ride up and over
Speaker 17: Bermuda and stay away from the island except for the
Speaker 17: rough surf and dangerous speech erosion and rip currents. Meanwhile,
Speaker 17: Hurricane of Melda has become the more important storm with
Speaker 17: eighty five mile per hour winds and is on a
Speaker 17: track right now to directly hit the island of Bermuda
Speaker 17: with winds that could exceed one hundred miles per hour.
Speaker 17: May very well be a Category two.
Speaker 15: Global news twenty four hours a day and whenever you
Speaker 15: want it with Bloomberg News.
Speaker 5: Now.
Speaker 9: I'm Monica Rix, and this is Bloomberg Karen Nathan, Thanks Monica.
Speaker 3: Time now for our Bloomberg Sports update, and for that
Speaker 3: we bring in John stash Hour.
Speaker 9: Thanks Karon.
Speaker 8: The start of the baseball postseason three low scoring games,
Speaker 8: and then the Dodgers beat the Reds ten to five
Speaker 8: in LA. They hit five home runs, two by show
Speaker 8: Heo Tony. The Red Sox beat the Yankees three to one.
Speaker 8: Garrett Crochet at one point retired seventeen banners in a
Speaker 8: row Detroit one two one in Cleveland, Derek scugelstruck at fourteen.
Speaker 8: That comes with back to back home runs in the
Speaker 8: fifth inning, beat San Diego three to one. The Angels,
Speaker 8: another team that will need a new manager next season.
Speaker 8: Ron Washington will not return. He didn't manage the second
Speaker 8: half this past season after heart surgery. That's your Bloomberg
Speaker 8: Sports update.
Speaker 3: Stay with us more from Bloomberg day Break coming up
Speaker 3: after this.
Speaker 1: Coast to coast on Bloomberg Radio nationwide, on and around
Speaker 1: the world on Bloomberg dot Com and the Bloomberg Business Appum.
Speaker 9: This is Bloomberg Daybreak.
Speaker 2: Good morning, I'm Nathan Hageren. For the first time in
Speaker 2: nearly seven years, a government shutdown is underway in Washington.
Speaker 2: But even before the funds lapsed just after midnight, the
Speaker 2: finger pointing had been well underway in the Senate.
Speaker 5: The Democrat caucus here in town in the Senate has
Speaker 5: chosen to shut down the government over a clean, non
Speaker 5: partisan funding bill.
Speaker 4: Republicans are plunging America into a shutdown, rejecting by partisan talks,
Speaker 4: pushing a partisan bill and risking America's healthcare.
Speaker 2: And that was Senate Majority Leader John Thune and Minority
Speaker 2: Leader Chuck Schumer hours before this latest shutdown took effect.
Speaker 2: Joining us this morning, Terry Haynes, the founder of Pangaea Policy. Terry,
Speaker 2: good morning. This is the first shutdown in nearly seven years,
Speaker 2: but certainly not the first government shutdown ever. Will this
Speaker 2: one be any different.
Speaker 7: Good morning, Hi, Good morning, Nathan. I think it will
Speaker 7: not be a lot different in the sense that it
Speaker 7: won't be very long, and in two weeks everybody will
Speaker 7: have forgotten what the fight was about, and there was
Speaker 7: very unlikely to be much economic impact. One major bank
Speaker 7: came out with a very good study that showed that
Speaker 7: of the fourteen shutdowns that happened since Reagan became president
Speaker 7: so forty five years ago, in ten of them, the
Speaker 7: S and P was up from the time that the
Speaker 7: shutdowns started to the time it ended. So I think
Speaker 7: it's unlikely to have any lasting economic impact or markets impact,
Speaker 7: that's for sure.
Speaker 2: Well, how do you see this playing out, because in
Speaker 2: the moments leading up to this, both sides seemed pretty
Speaker 2: dug in, particularly the Democrats when it comes to their
Speaker 2: demands for healthcare spending in a stopgap.
Speaker 7: I think a couple of things. I think that firstly,
Speaker 7: you know I've said to you before. I think both
Speaker 7: alreadys want to shut down for political reasons and for
Speaker 7: different political reasons. Democrats need to show some fight and
Speaker 7: some resistance to the bad Orange Man, so they're doing that.
Speaker 7: I also think it's not going to be a long
Speaker 7: one for a couple of reasons. One is that, uh,
Speaker 7: you know, all all Democrats need. Democrats are the ones
Speaker 7: doing the asking, so I'm not being partisan here. They
Speaker 7: have the more complicated position. Republicans just want to keep
Speaker 7: things open. Democrats want stuff. They say they want the
Speaker 7: healthcare stuff. All they need to do is to declare
Speaker 7: victory is get negotiations with the Republicans. Republicans have already
Speaker 7: indicated they're interested in doing that, just not on this bill.
Speaker 7: So that's a fairly easy win. Beyond that, you know,
Speaker 7: you can already see the cracks in Schumer's side. You
Speaker 7: had three defections yesterday Fetterman, Cortes, Mastow, and King, who's
Speaker 7: independent but caucuses with Democrats. And the longer this goes on,
Speaker 7: the more pressure there will be from public employee unions,
Speaker 7: who are big supporters of Democrats to want to bring
Speaker 7: those folks back. So there's going to be a lot
Speaker 7: of pressure on the Maryland and Virginia senators who represent
Speaker 7: hundreds of thousands of those folks, and they'll be pushing
Speaker 7: for some sort of resolution. After that, you only need
Speaker 7: one more vote in order to keep the government open.
Speaker 7: So you know, I think the tide goes out pretty
Speaker 7: quickly on Senator shum Or, unless unless he tries to
Speaker 7: declare victory here.
Speaker 2: You mentioned the Maryland and Republican senators obviously constituents of
Speaker 2: a large number of federal employees there. Do you think
Speaker 2: this indication from President Trump that he could use this
Speaker 2: shutdown to enact mass federal layoffs could lead to some
Speaker 2: cracks here? Is that what you're getting at?
Speaker 3: Oh?
Speaker 7: Oh, exactly? So, yes, I mean there is a threat
Speaker 7: to government employees, you know, employment status that hasn't existed before.
Speaker 7: So far, the administration has not kind of pulled the
Speaker 7: ultimate trigger on this, instead talking about furloughing people instead
Speaker 7: of riffing or you know, completely getting rid of positions.
Speaker 7: But you know, that's a distinction without much difference to
Speaker 7: people who are very concerned about their jobs. You know,
Speaker 7: I don't anticipate that there's you're going to have a
Speaker 7: situation where the four Democratic senators from those two states
Speaker 7: are going to you know, publicly break with Schumer or
Speaker 7: anything like that. But there's going to be an awful
Speaker 7: lot of pressure brought to bear to try to figure
Speaker 7: out something that helps and improves the status of those
Speaker 7: those public workers.
Speaker 3: This is Bloomberg Daybreak, your morning podcast and the stories
Speaker 3: making news from Wall Street to Washington and beyond.
Speaker 2: Look for us on your podcast feed by six am
Speaker 2: Eastern each morning, on Apple, Spotify, or anywhere else you listen.
Speaker 3: You can also listen live each morning starting at five
Speaker 3: am Wall Street Time on Bloomberg eleven three to zero
Speaker 3: in New York, Bloomberg in ninety nine to one in Washington,
Speaker 3: Berg ninety two nine in Boston, and nationwide on serious
Speaker 3: XM Channel one twenty one.
Speaker 2: Plus listen coast to coast on the Bloomberg Business app
Speaker 2: now with Apple CarPlay and Android auto interfaces.
Speaker 3: And don't forget to subscribe to Bloomberg News Now. It's
Speaker 3: the latest news whenever you want it in five minutes
Speaker 3: or less. Search Bloomberg News Now and your favorite podcast
Speaker 3: platform to stay informed all day long. I'm Karen Moscow.
Speaker 2: And I'm Nathan Hager. Join us again tomorrow morning for
Speaker 2: all the news you need to start your day right
Speaker 2: here on Bloomberg day Break